Gold and silver are down hard today, gold down now nearly $41, breaking the prior October 7 cycle low at $1,243 and trading roughly at $1,225. Silver is also down hard, over $1.25, trading at $17.48.
The bad news: The move down in gold holds the potential to cause a cycle inversion – sending gold into a low in December through early January 2017 (instead of a high) possibly even to a record new low below $1,000.
The semi-good news: Silver has not broken its equivalent October 7 cycle low at $17.11. This non-confirmation is important. If a cycle inversion is taking place, silver too needs to break its October 7 low.
Put another way, if silver can hold its ground and not break its October 7 low, then we could see one heck of a move back up, a slingshot-type move higher, like the Dow did when it became apparent Trump had won.
So for now …
FIRST, hold your physical gold. If you bought previously at $1,207 and more recently at $1,250, 10% each time, your average is roughly $1,228.50 – almost precisely where gold is trading right now.
Remember, these are long-term positions. If a cycle inversion is coming, I will either tell you to exit or to hedge the positions appropriately with an inverse ETF.
SECOND, you should have been stopped out of Harmony Gold Mining Co. Ltd. (HMY) this morning when it hit my recommend good-till-canceled stop at $2.83. If not out, for whatever reason, exit now at the market and make sure you have canceled any outstanding sell stops for HMY.
I will recommend re-entering HMY at the appropriate time.
THIRD, you also were stopped out of Euronet Worldwide Inc. (EEFT) yesterday as well.
Here too, I will recommend re-entering at the appropriate time.
The volatility is extreme right now, so try not to panic. That’s precisely what these markets want you to do. So be patient and disciplined and I’ll keep you posted as often as needed.
Best wishes,
Larry
